Present: TRADEMARKS-
New Kinds of Infringement, Source Confusion and Dispute Resolution
|
|
|
|
|
© 2000 Philip R. Green, Partner, Law
Offices of Green & Green |
|
www.greenandgreen.com |
|
Originally Produced for The State Bar
Annual Meeting 2000 |
|
Business Law Section/ Cyberspace Law
Committee |
|
|
The Headlines:
|
|
|
|
Ford Sues to stop “Model-E.com” |
|
MediaCentral.com 8/7/2000 [modele.com] |
|
Microsoft Wins Cybersquatting Case |
|
Yahoo.com 7/27/00 [microsof.com] |
|
244 Domain Names Ordered Transferred to
Telia (Sweden) |
|
WIPO Arb. & Med Crt. Case
D2000-0599 [itelia.net…] |
Where we have been –
Varying degree of success
|
|
|
|
|
Porsche Cars North America, Inc., vs.
Porsch.Com…(dozens of defendant URLs) USDC, E. Dist. Of VA, Alexandria
Div. Civil Action No. 99-0006-A, filed 1/6/99 |
|
Started In rem Action over the Domain
Name as property (the Res) |
|
Trying to prevent locating worldwide
infringers in many nations. |
|
Cuts cost of litigation. |
|
Dismissed |
|
Hasbro, Inc. vs. Clue Computing, Inc.
(1999) 52 U.S.P.Q.2d 1402 |
|
DILUTION Case: Not famous enough |
|
failure to demonstrate likelihood of
confusion in the other’s market. |
|
Cybersell Inc. vs. Cybersell, Inc. (9th
Cir.1997) 130 F.3d 414 |
|
JURISDICTION: AZ corp. that “merely” advertises commercial
services over Internet, could not stop same name FL corporation that offers
web page construction services over the Internet. |
|
See Zippo Manufacturing Company vs.
Zippo Dot Com, Inc. (W.D. Pennsylvania, 1997) , 65 USLW 2551, 42 U.S.P.Q.2d
1062. |
|
Avery Dennison vs. Sumpton 51
U.S.P.Q.2d 1801 (9th Cir. 1999). |
|
A-D not famous enough to prove dilution
by Avery.net and Dennison .net |
|
plus factor, names of real people. |
Breakthrough Cases:
|
|
|
|
Panavision vs. Toeppen (9th Circuit,
1997) 46 U.S.P.Q.2d 1511 |
|
Piracy with Chutzpah |
|
Trying to sell back to famous Hollywood
Icon Panavision |
|
Only $18,000 demanded as price. |
|
Congress based factors of ACPA from
this case. |
|
Brookfield Communications, Inc.,
vs. West Coast Entertainment
Corporation, U.S.C.A. (9th Cir.
1999) 174 F.3d 1036, 50 U.S.P.Q.2d 1545 |
|
The mere registration of a domain name
“Moviebuff.com” does not provide any trademark priority as against a prior
trademark user. |
|
Metatags may serve as the basis for an
infringement action. |
Unfair Competition under
State & U.S. Law
|
|
|
|
Trademarks on the run… INFRINGEMENT |
|
These Actions also usually involve: |
|
Copyright Infringement |
|
Rights pf Publicity |
|
Trade Secrets violations |
|
Patent Infringement |
|
Privacy and other e–commerce actions. |
|
Defamation |
|
Employment issues |
|
Jurisdictional disputes |
|
Valuation & Investors rights |
|
1st Amendment Rights,
Foreign Laws |
|
Violations of Anti-Trust Laws |
|
|
Infringement: Confusion
of source
|
|
|
|
|
Essence: That the mark that identifies
a certain source. Query: Is public confused as to source ? |
|
Proof that a mark is “confusingly
similar to” an existing mark: |
|
Proof that the markets are same/similar |
|
Proof of confusion as to Source,
Endorsement, “Passing Off”. |
|
Showing that consumers are
sophisticated vs. not careful in their selection. |
|
Initial Interest Confusion Internet
First |
|
Consumer confused by URL, Search result
then turns away when they know. |
|
Post Purchase Confusion |
|
Hermes “Kelly Bag” – When Consumer buys
“knockoff” thinking they got bargain & passes off as “status” symbol
confusing others. Engel Ind v. Lockformer 946 F2d 1528 |
Infringement Proof of
ownership
|
|
|
|
Unregistered marks protectible |
|
Registered marks: application process
(prosecution history) becomes an issue |
|
Strong and Weak marks. |
|
Proof of Use and Dates of Use |
|
Defendants: Breaching Licensees,
Manufacturers, Distributors, Sellers, Importers of counterfeits. |
|
Laches Applies – Write letter and
follow through. |
Infringement & Inter
Partes Proceedings
|
|
|
|
Interferences & Oppositions |
|
During Other’s Application Process |
|
Timing is important. |
|
Cancellations of registrations |
|
Patent & TM Office / TTAB |
|
Appeal to TTAB from Examiner of
trademarks. |
|
Appeal to U.S. Court of Appeals for the Federal Circuit from
TTAB. |
Infringement: Commerce to e-commerce
15 U.S.C.1051:
|
|
|
The word “commerce” means all commerce which may lawfully be regulated by Congress. |
|
15 U.S.C. 1051:(a) (1) USE: “The
owner of a trademark used in commerce
may request registration of its
trademark on the principal register … filing in the Patent and Trademark Office an application and a
verified statement, … and such number
of specimens or facsimiles of the mark as used as may be required by the Commissioner. “ |
|
15 U.S.C. 1051(b) (1) Intent to Use
(ITU or “1 b”) “A person who has a bona fide intention, under circumstances
showing the good faith of such person, to use a trademark in commerce may request registration
…[by] filing in the Patent and
Trademark Office an application…” |
|
In the ecommerce world USE may be
easier, cheaper and instantly worldwide. |
Infringement Defenses: Is
it a trademark
|
|
|
To act as the source indicator the mark
should be fanciful and not describe the goods/services. |
|
|
|
Fanciful Suggestive Descriptive |
|
It can be a "sound alike," a face, a character, words,
drawing (logo), and many "trade dress" styles can be distinctive of
a restaurant, or "package dress" as a way of packaging software, by
way of examples. |
|
A mark must not be misdescriptive,
geographically misleading, or fraudulent. |
|
Must NOT be CONFUSINGLY SIMILAR to
another mark, registered or not. |
Infringement TRADEMARK law is Territorial
|
|
|
It does NOT operate outside of the U.S. |
|
ICANN rules for ADR are meeting the
U.S. policy by allowing the First Use date to serve as the "test"
date to calculate priority for US marks.
The U.S. could change its rules also. |
International cooperation
predicted; the EU trademark, GATT
|
|
|
|
|
TRIPS
Trade Related Intellectual Property |
|
Portions of Uruguay Agreement |
|
The
period of non-use of a mark which triggers a presumption of
abandonment was raised from two to three years. Registration of new
geographic names for wines and spirits was barred unless the product
comes from the place named. |
|
Customs seizure of infringing
goods/services does not exist on Internet, e-seizure? |
|
REGISTER MARKS WORLD WIDE |
Infringement Typical Defenses:
|
|
|
|
|
No Use of a trademark in the U.S. in
commerce: Section (a) Commerce Congress has the power to regulate Commerce .
. . among the several
States. And internationally |
|
U.S. Const. art. I, §8,
cl. 3 |
|
No Bona fide INTENT TO USE the mark in commerce soon. (A “Sec. (b)” mark) |
|
Prosecution history shows a flaw in
application |
|
Applicant knew of another similar mark |
|
Mark is WEAK |
|
Innocent Infringement |
|
Fair Use is becoming a more often used
defense. |
|
Note that there is also “Registration
Priority” |
Dilution: A “Famous” Mark
|
|
|
15 U.S.C. 1125 (c ) (1)Famous marks –
Dilution or “How to Stop a trademark infringer without proof of public
confusion” |
|
Differing views on what is “famous” |
|
Factors: inherent or acquired
distinctiveness, duration and extent of use, extent of advertising and
publicity, geographical extent of the trading area, channels of trade, degree
of recognition of the mark, nature and extent of use of the same or
similar marks by third parties; and whether the mark was
registered. |
Dilution : No need to
prove “Public Confusion”.
|
|
|
|
Greatest Show On Earth” Ringling Bros.-Barnum & Bailey v. Utah Div. of
Travel Dev., 42 U.S.P.Q.2d 1161 (E.D. Va. 1997), (famous, but not
diluted by “THE GREATEST SNOW ON
EARTH”). |
|
“Sporty’s farm” for airline catalogs is
famous. Sporty's Farm L.L.C., V.Sportsman's Market, Inc, Omega Engineering,
Inc., Nos. 98-7452(L), 98-7538(XAP) U.S.C.A. 2nd Cir., Feb. 02, 2000, 2000 WL
124389 (famous enough to stop “sportys.com” |
Dilution : How
|
|
|
|
|
Blending - The selling, under a mark not the seller’s, a variety of goods
or services not intended by the original owner to be associated with its
goods or services. |
|
This causes the distinctiveness of the
mark to be diluted. |
|
Tarnishment |
|
By placing the mark in disdain by
selling bad goods under the mark. |
|
By having goods “passed off” as those
of a a known Brand when the goods do not originate with the trademark owner. |
|
|
METATAGS Factors:
|
|
|
|
Hidden text not generally visible in
browsers like a watermark. |
|
Searchable by most web search services
such as: |
|
Yahoo! |
|
AOL |
|
Google and others. |
|
E commerce on the WWW depends on
“TRAFFIC” OR “HITS” AND exploration of a web site by buyers and users. |
|
Search Engines find web sites by text
contained in them. |
|
Repeated use of a word attracts
searches. |
METATAGS Cases:
|
|
|
|
Playboy Enterprises, Inc. v. Calvin Designer Label, (N.D. Cal.
1997) 985 F. Supp. 1220, 44 U.S.P.Q.2d 1156, Playboy Enterprises,
Inc. v. AsiaFocus Int'l, Inc. 1998 WL 724000 (E.D. Va. 1998) |
|
Use of “playboy” invisible yet
searchable can be unfair competition. |
|
Playboy Ent., Inc. v. Terri Welles F.Supp.2d 1098.
U.S.D.Ct, S.D. Cal., May 21, 1998. |
|
Former "Playmate of the Year"
(pmoy) defendant was entitled to "fair use" defense in connection
with her use of title "Playmate of the Year" in her web page
heading and link page, her use of the "Playmate Of the Year (PMOY)
'81" |
|
Brookfield Communications, Inc. v. West
Coast Entertainment Corp., (9th Cir. 1999) 174 F.3d 1036, n.23, 50 U.S.P.Q.2d 1545, n.23 |
|
Broadest definition of Metatags as
including all machine readable code. |
METATAGS Fair Uses…
|
|
|
Rare case where a fair use can be
found. |
|
Truthful statements major factor in
PMOY case. |
|
Legitimate use: The Welles site was
also meant to be her own fan club site and not an imitation of Playboy. |
|
Use of terms "Playmate of the
Year" on her web page and "Playboy" and "Playmate"
marks as meta tags, did not create likelihood that web surfers would be
confused that her website was endorsed or sanctioned by Playboy. |
METATAGS Can be
Offensive:
|
|
|
|
The offences are: |
|
Trademark infringement |
|
Copyright infringement |
|
Patent infringement |
|
Right of Publicity (Name &
Likeness) violation |
|
Passing Off and fraud |
|
Trademark dilution |
|
Others…. |
The Internet Factor
|
|
|
The Internet and the ability to display
logos and other forms of trademarks on the Web has transformed a somewhat
difficult issue into a legal GRAY area: |
|
Now one can instantly "use" a
mark internationally, and in commerce that Congress regulates, via the Web. |
The Internet Factor
|
|
|
|
What has Happened to trademark law because of the Internet |
|
WHAT A TRADEMARK IS: |
|
SECTION 45 of Trademark Law Revision Act (TLRA) defines
trademarks as |
|
“any word, name, symbol or device or
any combination thereof (1) used by a person, or |
|
(2) which a person has bona fide
intention to use in commerce and applies to register on the principal
register to identify and distinguish his or her goods, including a unique
product, from those manufactured or sold by others and to indicate the source
or goods, even if that source is unknown.” |
The Internet Factor
|
|
|
|
|
THE LAW CHANGES: TLRA 1988: TTIA 1999 |
|
TLRA Revised trademark law to allow for
ITU. |
|
Public Law 100–667, 102 Stat. 3935 |
|
Trademark Law Treaty Implementation Act
1999 |
|
In order to simplify and harmonize U.S.
Law with the WIPO treaty of 1994. |
|
Send 1 specimen |
|
Renewal now not conditioned on Use (Sec
9) (But beware of Sec 8 continuity) |
|
Privatization of the Patent & TM
Office |
|
Changes to: Fees, Applications, Rules. |
|
eTEAS Online Registration System. |
The Internet Factor:
Classes of Goods/Services
|
|
|
|
|
|
It’s a Small Universe: |
|
Fewer classes on the Global Network: |
|
8 Internet vs 42 classes in brick &
mortar (real) world |
|
Classes 9, 35, 36, 37, 38, 39, 41 &
42 means more clashes COMBINED with the unique nature of URLs |
|
9=e-goods, 35=business services,
advertising, 36=banking & financial, insurance services, 37=repair;
installation services 38=Telecommunications, 39=travel arrangement services 41=entertainment services, educational,
42=misc. services. |
The Internet Factor:
Clashes Increase
|
|
|
The Internet introduces more potential
for clashes because markets and audiences are all in a small niche of
advertising, marketing and selling e-goods and financial and travel
services. it is a smaller cyber world
out there. |
|
Upside: I-Infringers are easier to find. |
|
The Internet Factor:”Branding” |
|
Initial Interest Confusion |
The Internet Factor
|
|
|
|
Does Mark + ".com" serve as a trademark? |
|
Considered as an Address by PTO. |
|
A mark using a Domain Name is registrable as a trademark only IF
it serves as a source identifier. In
RE Eilberg (TTAB 1998) 49 USPQ2nd 1955 (no trademark use shown by atty
letterhead, cards) |
|
Advertising One’s Own Services on the
Internet is not a Service Use. Because it is that activity the name is used
for. It IS the source, not its identifier. |
|
Solution: Need to use mark in Other Media – buses, posters, TV |
|
Ok to show only the 2nd
level domain name on drawing. |
|
A gTLD (The “.com” part) Has NO
trademark significance. (Section 1 (c), (d)) |
|
USE is NOT established by registration
of a Domain Name alone. |
The Domain Name:
|
|
|
The numeric address of a server in
alphabetical terms.
Greenandgreen.com = 123.456.78.12 (example) |
|
Top level (.com, ,org. .edu, .gov
etc.)
Soon: “.firm”, “.info”, “.store” and
several others. |
|
Secondary level (Someone’s TM .com) =
trademark |
|
There are many 10,000’s being
registered each month. |
|
Used to Identify and Attract Traffic |
|
Conflict with trademarks. |
CYBERSQUATTING: Anti Cybersquatting Consumer
Protection Act (ACPA) Under 15 USC 1125(d)(1)(A):
|
|
|
The registration of a domain name with
bad faith intent to profit from the mark of another. |
|
Taking another’s trademark as your
secondary level domain name constitutes the act of Cybersquatting. |
|
This is as much an act of piracy as
copyright or patent infringement. |
Cybersquatting Elements:
|
|
|
Registers, traffics in, or uses a
domain name
of |
|
a mark that is distinctive at the time
of registration of the domain name |
|
that is identical or confusingly
similar to that mark or |
|
of a famous mark that is famous at the
time of registration of the domain name, |
|
is identical or confusingly similar to or
dilutive of that mark. |
|
With the bad faith intent to profit
from that mark |
Cybersquatting Bad Faith Intent to Profit - Factors:
|
|
|
The trademark & intellectual
property rights of the parties |
|
The extent the Domain Name consists of
another’s mark or name |
|
Prior uses if any of the Domain Name in
offering goods/services |
|
Any “fair use” factors like non-profit |
|
An intent to divert traffic (users) to
another site than the trademark owner’s. |
|
Intent to Dilute |
|
Offering to sell the Domain Name. |
Cybersquatting Bad Faith Intent- Offers to sell the Domain
Name:
|
|
|
|
|
Offers to sell: to the trademark owner
or others (hold the Domain Name for ransom) |
|
The quantity of the Domain Name user’s
content vs. “valid” content |
|
1st Amendment “content”
concerns – The “Sucks” cases Verizon (really sucks) |
|
The story of why a Domain Name was
chosen and |
|
Did the Domain Name registrant know of
the offended trademark? |
|
SPORTY'S FARM L.L.C., v.SPORTSMAN'S
MARKET, INC, Docket Nos. 98-7452(L), 98-7538(XAP) U.S.C.A., 2nd
Cir. Feb. 02, 2000, 2000 WL 124389. |
|
“Cybersquatting involves the
registration as domain names of well-known trademarks by non-trademark
holders who then try to sell the names back to the trademark owners.” |
Cybersquatting In Rem Action:
|
|
|
|
15 U.S.C. 1125 (d) (2) (A) provides for
an In Rem action |
|
In Rem - against the property rights in a Domain Name |
|
See Porsche case (USDC, E. Dist. Of
Virginia Alexandria Division Civil
(Action No. 99-0006-A (filed 1/6/99 ) |
|
It can be difficult and expensive to
litigate every Domain Name squatter – they are all over the world. |
Cybersquatting In Rem: Rules
|
|
|
If you cannot locate the Domain
Name owner by notice to the
registered owner |
|
Then you may, by publication of notice
as ordered by a court, obtain in rem jurisdiction into the district of the |
|
Court where the register has its
offices. |
Cybersquatting In Rem: Issues
|
|
|
to what extent is a URL property? |
|
Recent case: Network Solutions Inc vs.
Umbro International Va. S. Court 4/21/00 No 991168, suggests that if the URL
is a or permits a service, it is not garnishable under Virginia’s garnishment
laws. |
|
Sec. 1125 (d) allows courts to order
the Domain Name register to turn over a URL to a trademark owner. |
|
No Money Damages in an In rem Action. |
Cybersquatting Retroactivity of the ACPA.
|
|
|
The act applies to domain names that
were registered before and after the law's enactment, however: |
|
Injunctive relief and transfer of the
domain name are the only available remedies if the domain name was registered
before the law's enactment. |
|
Damages (whether actual or statutory)
are available only if the domain name was registered after the law's
enactment (which was Nov. 18, 1999). |
Cybersquatting Personal Names: 15 U.S.C. 1129 CIVIL
ACTION:
|
|
|
Any person who registers a domain name
that consists of the name of another living person |
|
substantially and confusingly similar
thereto, |
|
without that person's consent |
|
with the specific intent to profit from
such name by selling the domain name for financial gain to that person or any
third party. |
|
Note that California civil code 3344
creates a Right of Publicity and that this extends to deceased personalities. |
|
Characters names are trademarks, not
treated as personal names. |
Cybersquatting Personal Names: BIG Exception: ©
|
|
|
If such name is used in, affiliated
with, or related to a work of authorship protected under Title 17, including
a work made for hire as defined in section 101 of Title 17, |
|
and if the person registering the
domain name is the copyright owner or licensee of the work, the person
intends to sell the domain name in conjunction with the lawful exploitation
of the work… |
|
There may be no liability |
Cybersquatting Personal Names: DAMAGES
|
|
|
|
a court may award injunctive relief,
including: |
|
the forfeiture or |
|
cancellation of the domain name or |
|
the transfer of the domain name to the
plaintiff. |
|
The court may also, in its discretion,
award costs and attorneys fees to the prevailing party. |
|
Effective date not retroactive: This
section shall apply to domain names registered on or after November 29, 1999. |
|
Julia Roberts: Won with WIPO but got
sued for reversal. |
|
|
Cybersquatting Cases Since ACPA: Many Successes
|
|
|
|
Joseph C. Shields, Individually And T/A
The Joe Cartoon Co., John Zuccarini
54 U.S.P.Q.2d 1166 No. CIV. A. 00-494.
U.S.D.C. E.D. Pa, March 22,
2000 |
|
The Joe’s Cartoons Case also has the
distinction that it awards Statutory Damages. |
|
Sporty's Farm V.Sportsman's Market,
Inc, Omega Engineering, Inc., Docket Nos. 98-7452(L), 98-7538(XAP) U.S.C.A. 2nd
Cir. |
|
The First ACPA case originally a
Dilution case. |
|
Sportsman’s showed bad faith intent by
his poor story of originality. |
ADR: International
Arbitration Alternative
|
|
|
|
WIPO – ICANN Uniform Rules Apply |
|
See www.icann.org |
|
Start Case by “submitting a complaint in accordance with the Policy”* |
|
Detailed rules and instructions. |
|
Form complaint and published fees |
|
*Uniform Domain Name Dispute Resolution
PolicyAs Approved by ICANN on October 24, 1999 |
ADR: How To Use The Rules
|
|
|
|
CASES SUBJECT TO WIPO ADR: |
|
(i) Conflicting domain name is
identical or confusingly similar to a trademark or service mark in which the
complainant has rights; and (ii) Conflicting URL owner has no rights or legitimate
interests in respect of the domain name; and (iii) conflicting domain name
has been registered and is being used in bad faith. |
|
Notice to the Respondent with Evidence
of Registration and Use in Bad Faith. |
|
This is a VERY difficult policy to
fulfill 15 U.S.C. may have more chance of success. |
ADR: WIPO – ICANN Uniform
Rules UDRP
|
|
|
|
ICANN can transfer Domain Names: |
|
The ADR provider’s receipt of written
or appropriate electronic instructions from you or your authorized agent to
take such action; |
|
receipt of an order from a court or arbitral tribunal, in each
case of competent jurisdiction, requiring such action; and/or |
|
receipt of a decision of an
Administrative Panel requiring such action in any administrative proceeding
to which you were a party and which was conducted under this Policy or a
later version of this Policy adopted by ICANN. |
ADR: - Procedure
|
|
|
|
Choose Arbitration administrator |
|
1-3 ARBITRATORS |
|
File Complaint, send copy to Respondent |
|
Decisions are Published |
|
Limited time to appeal |
|
Have appeal ready before arbitration. |
ADR: Selection of
Provider.
|
|
|
|
|
The complainant selects the Provider
from among those approved by ICANN by submitting the complaint to that
Provider. The selected Provider will administer the proceeding, except in
cases of consolidation…” |
|
Consolidation. |
|
In the event of multiple disputes
between a respondent and a complainant, either party may petition to
consolidate the disputes before a single Administrative Panel |
|
Fees. All fees charged by a Provider …
shall be paid by the complainant |
|
These are by Internet published
schedule. |
ADR: Remedies.
|
|
|
|
The remedies available to a complainant
are limited to: |
|
requiring the cancellation of the infringing domain name or |
|
the transfer of the infringing domain
name registration to the complainant. |
|
|
Cases Since ACPA:
Successes for trademark owners:
|
|
|
|
Joseph C. Shields, Individually And T/A
The Joe Cartoon Co., John Zuccarini 54
U.S.P.Q.2d 1166 No. CIV. A. 00-494.
United States District Court,
E.D. Pa, March 22, 2000 |
|
The Joe’s Cartoons Case also has the
distinction that it awards Statutory Damages. |
|
Sporty's Farm L.L.C., V.Sportsman's
Market, Inc, Omega Engineering, Inc., Docket Nos. 98-7452(L), 98-7538(XAP)
United States Court of Appeals, Second Circuit. Argued: March 17, 1999
Decided: Feb. 02, 2000 |
|
The First ACPA case. |
|
Sportsman’s showed bad faith intent by
his poor story of originality. |
Cases Since WIPO-ADR:
Still Complex World for trademark owners
|
|
|
|
Worldcup.com |
|
13 of 15 transferred but ‘wc’ is not
distinctive. |
|
Formula One vs F1.com |
|
F1 not distinctive enough |
|
Julia Roberts Case – |
|
Win ADR then get sued. |
|
Julia Fiona Roberts v. Russell Boyd Case No. D2000-0210 |
|
Hendrix Family, Warner/EMI Win Domain
Name Rights |
|
Billboard.com 8/9/00 |
|
Caution –Estates: Register Celebrity
names. |
|
Niketown.com |
|
Bad Faith found in holding URL hostage
in contract dispute. |
|
|
Complexities remain for
the Future:
|
|
|
New Laws Enacted |
|
New Cases Decided |
|
U.S. Continues to Prosper on IT Growth |
|
Bots to buy Anything You Want…Stay
Tuned! |
|
See the State Bar Web Site and watch it
grow. http://www.calbar.org/buslaw |
|
|
Thank You!
|
|
|
© 2000Philip R. Green, Attorney at Law
www.greenandgreen.com |